Do you use Credit Card for Payments ?

Hello Everyone

These days its required to have a card for the online payment of various things. Many of such payment gateways also provide options to pay through internet banking but still, some of them don't have. This percentage is so high where cards are accepted for payment so most of us try to keep cards for online payment.

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There are two types of cards that we use. One is a Debit card and another is a credit card and we know that debit cards use our money from the account while credit gives us a refined limit to spend and pay thereafter. Many people think that spending money through a debit card is a good idea because you don't get any liability from the bank and spend only what you have with you. With the credit card, things are different because its a kind of liability that you increase with each payment and you get bills for the same that must be paid on time else bank charges a huge amount.

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Banks in India charge an interest of 35-42% (varies from bank to bank) if credit card outstanding is not paid by the due date and they also charge a penalty of approx 10 USD on top of interest. If you think from this perspective then possibly you might end up with the thought that credit card is not a good choice and we should avoid it.

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How to benefit with Credit card Spend-

I have a different opinion because of some benefits that I get with credit cards-

• Always use the credit card to pay when its really necessary and never treat it as free money.
• I pay the outstanding 2 days before the due date and use the CRED app that manages all my credit cards in one place and I also get rewards for paying back my card outsing.
• I get reward points on each payment and I accumulate these points for bigger reward redemption. Some of the banks give the option to adjust the point against outstanding with a minimum limit which is a great option.
• I also get a period of 45 days (depending upon the day I spent) and for this period I need not pay any extra amount and my saving funds are kept in the bank that earns some interest (this interest is not too high ofcourse, but something is better than nothing)
• I never take the card with the annual fee so there is no charge I need to pay every year.
• Credit card spend also helps to create a good credit (CIBIL) history that helps when I need a loan from the bank.

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Above benefits are only available if you use the credit card for spend and with a debit card, you might get only reward points that are also not good enough. Maybe in some countries, it could but I still think that if the credit card is used wisely then we can get so many benefits and its a good product that we should for. Even BlockFI is going to issue a credit card with Bitcoin so you will have the option to pay using bitcoin and also get some percentage of BTC cashback.

As I already mentioned that few things can be different in some countries so please comment if you want something to share that is not mentioned.

Thank you so much.